Decred is unique for its innovative and hybrid voting system by consensus of Proof-of-Work (PoW) and Poof-of-stake (PoS).
In Bitcoin, for example, Proof-of-Work (PoW) is used and the miners are the ones who perform that task and are the ones who determine the future of Bitcoin. If a change in its protocol were suggested, a consensus would have to be reached so that the change could be implemented. The computing power of each dictates the influence it will have on the rest of the miners.
Decred has perceived that this form of consensus privileges the great parties and gives them too much power. So he has established that the total power of a miner can barely be 60%. The strikers, those users of the network that stake their Decred coins to secure the network in exchange for a reward, will have 40% of the influence. In this way, it is tried to avoid that a same person can have much influence in the network since it would require a lot of money for it.
The main idea of Decred’s hybrid consensus mechanism is to be flexible and democratic, without political power games.
Lead developer Dave Collins said, “It allows those interested to fully control the direction that Decred is taking. This not only concerns block sizes but if, for example, quantum computing gets bigger, you can easily change the signature algorithm or the coding mechanism. Basically, you can change virtually every part of the system and we believe that this is very important. Things develop over time and it is absolutely necessary to have a way to flexibly update the rules. In my opinion, this is one of the fundamental mistakes of Bitcoin, the focus of its ‘governance’. “
Voting for Lightning Network
It is not necessary to be a miner in order to influence the future of Decred. Just one wallet and some cryredtomed decred (DCR) in it are enough for it. The users of the network have the right to vote. To give an example of how it works, we can mention the moment in which Decred wanted to implement Lightning Network. The users of Decred could communicate if they were for or against. The final result was in favor with a vote of 98%. This is not the only way the community has to be of value to Decred.
In some way it could be said that the coin itself develops. 10% of all new Decred generated goes to a group of developers. What motivates the developers of the community to improve the currency more and more.
Token Decred (DCR)
An ICO was not made to distribute the currency and raise funds. The distribution is carried out in its own blockchain. However, 8% was pre-established for the team. And it was distributed as follows:
- 4% went to the developers. With this, they get paid for the work they do for Decred.
- 4% was an airdrop for the first followers of Decred and the community.
All the DCRs are distributed among the miners, the strikers and the group of developers in the following way.
- 60% goes to the miners (PoW).
- 30% goes to the strikers as a reward for voting.
- 10% goes to the group of developers.
Its main function is to be used as a legal and global payment method, like Bitcoin. It has 7,145,743 tokens in circulation with a maximum of 7,565,743 DCRs and its own blockchain.
The team that develops Decred is quite large. Consisting of 23 developers, 7 designers, 12 community specialists, 5 salespeople and 3 strategists. Among them, the most remarkable name is that of Jacob Yocom-Piatt, who can be seen as a pioneer of cryptography.
The best option is to have your own wallet. You can find it on their website.